3 Building Mistakes To Avoid When Creating A Custom Home
When it comes to building a custom home, you have a higher degree of responsibility for the building process, which means you have a bigger responsibility for any mistakes that take place. When it comes to building a custom home, with the right knowledge, you can avoid making a classic first time home builder mistake.
Mistake #1: Not Taking Full Advantage of Your Mortgage
When you get a loan to build a home, it is different than a typical mortgage loan. With a building loan, you are getting a construction to permanent loan, which means that the loan is designed to cover all of the costs of building the home, and then once the home is built, the amount is rolled over into a regular mortgage.
As you build your home and add up the expenses that are calculated into your mortgage, make sure you buy everything you need for your home with that money. Don't just purchase the framing and roofing material, purchase things such as the water heater, stove, refrigerator, and fixtures.
Avoid purchasing items for your home out of your own pocket; roll everything together into your construction loan. You will enjoy a better interest rate than if you purchase items on your credit card, and you will reduce the money you spend out of pocket.
Mistake #2: Not Planning for Delays
Even the best run construction projects are going to run into delays eventually. It is a natural part of the building process. Material may not be in stock, or a thunderstorm may roll through the area, or delivery may get postponed for a day.
When you are building a home, you shouldn't expect to move in on an exact date. You should plan for some wiggle room for a few weeks or a few months. You should have a plan for where you will live if your home isn't ready by the move-in date your contractor first gives you because, in a construction project, things often change.
Mistake #3: Micro-Managing the Building Process
It is true with a custom home that you get to control every element of the build. However, that doesn't mean that you should control every tiny element of the build. You should share your big ideas with your builder, and work with them to pick out the material for each room in your home.
However, you should also trust your builder to make decisions in the moment that make sense. You want to develop a relationship with your builder where you can share what you want, but also trust your builder to make smart decisions for the overall build.
When you build a custom home, take full advantage and buy everything your home needs with the construction loan, which will turn into your mortgage loan. Be prepared for the move-in date to get pushed back a bit, and don't try to micro-manage the building process. You need to trust your builder to make in the moment decisions and let your builder know the decisions you want to have control over.